Blis' silence leaves exchange unfazed

By KEVIN TAYLOR

The Stock Exchange has no problem with Blis Technologies failing to tell the market for seven months that a Government regulatory body had ordered a halt in production of its only revenue-generating product.

Blis did not breach Stock Exchange listing rules when it kept quiet the halt in production of its Blis K12 Throat Guard product, the exchange said yesterday.

However, the exchange had "taken the time" to ensure the fledgling biotech company understood its information disclosure obligations, said marketing and communications manager Melissa Jenner.

Production of K12, made for Blis by Nelson firm Alaron Products, was halted on the orders of a Health Ministry unit, Medsafe, in May for about three months. The halt came at the same time the product was being launched on to the market.

But the production problem was revealed only on November 28 when Blis reported a half-year loss of $1.278 million.

Medsafe, which assesses medicine safety, wanted to review the procedures used to make K12.

Blis said the halt hit sales, but chief executive Kelvin Moffatt could not quantify the impact last month. He described the issue as minor and "one of those startup things".

Blis ceased promotion for a few months so stock did not run out.

K12 production restarted only in late September, which meant the company had been unable to take advantage of peak demand for the product over the winter months.

The Business Herald asked the exchange whether it thought the level of disclosure by Blis was adequate.

Jenner said that after corresponding with the company it considered Blis had not breached the listing rules relating to disclosure of information to the market.

She said K12 stocks for three to four months had been manufactured, therefore not stopping distribution of the product.

However, she said the exchange had taken time throughout its inquiry to ensure that Blis was fully aware of its disclosure obligations to the market.